The Hidden Dangers of Money Mule Scams

June Scam of the Month

Have you ever been promised easy money for a simple favor—like receiving funds and forwarding them to someone else? If so, you could be unknowingly walking into a Money Mule scam.

What is a Money Mule?

A Money Mule is someone who receives and transfers stolen money on behalf of fraudsters. Often, they’re manipulated through larger scams—like fake job offers, romance schemes, or lottery winnings. What seems like a harmless transaction can land you in serious legal trouble.

How are Funds Moved?

Fraudsters don’t just stick to one method. They often move money through:

  • Bank transfers

  • Personal or bank checks

  • Cash

  • Pre-paid cards

  • Cryptocurrency

  • Multiple bank accounts

  • Money services like P2P platforms, wire transfers, or lending apps

The 3 Types of Money Mules:

  1. Unwitting Mules

    You don’t realize you’re committing a crime. These individuals are tricked into helping through job or romance scams. They’re told to use their personal bank accounts to receive and forward money—often promised a cut of the funds. But those “funds” are stolen, and the money trail leads straight back to you.

  2. Witting Mules
    You’ve been warned—but choose to ignore it. After being alerted by banks or authorities, these individuals continue working with the scammers. Financial gain or denial keeps them trapped in the cycle.

  3. Complicit Mules
    You know it’s illegal—and do it anyway. These are active participants in criminal operations. They open accounts, recruit others, and may even travel abroad to help set up fake businesses. Their motivation? Financial gain or loyalty to criminal networks.

Real Consequences

Being a money mule isn't just risky, it’s illegal. Potential consequences include:

  • Criminal prosecution and jail time

  • Charges like wire fraud, money laundering, and identity theft

  • Loss of personal information to scammers

  • Damage to your credit and finances

  • Being forced to repay what victims lost

Ways to Protect Yourself

  • Trust your instincts—if something feels off, it probably is.

  • Never accept or move money on behalf of someone you don’t know.

  • Avoid using your bank account—or opening a new one—to transfer funds for others.

  • Do not sign or deposit checks from unfamiliar names.

  • Be cautious of unexpected cash winnings or offers that seem too good to be true.

  • Never share your banking details or one-time verification codes with anyone.

  • Report suspicious activity to your financial institution and the proper authorities right away.

Where to Report?

If you suspect you’ve been a victim of this type of scam, it’s essential to act quickly. Report any suspicious activity to your bank or credit union so they can monitor your accounts and help safeguard your money and personal information. Report to the Federal Trade Commission (FTC) online or call 1-877-438-4338. Use the FBI Internet Crime Complaint Center to file a complaint.

Scam of the MonthBrianna Glose